Preparing an application for bank financing is one of the many ways an accounting firm can help your organization – yet many clients may not think of asking their accounting partner for this kind of help. Read on to discover how your accounting firm might assist you in this area
Beyond preparing year-end tax returns, financial statements and tax strategies, your accounting firm may be able to help your organization address its financing needs.
If you are thinking about approaching a bank for financing, ask your accounting firm to assist you in these areas.
Double check your financing requirements
You don’t want to borrow more money than your organization needs because you’ll end up paying unnecessary interest expense. Ask your accounting firm to:
- Review your corporate business plan and the reasons you think you need to borrow money. Your accountant can help you to calculate the exact amount of money you need.
- Recommend a list of financing options best suited to your needs. For example, equipment leasing may be less expensive than taking out a traditional bank loan.
- Search your business finances for hidden cash, cost savings and unused assets that can be converted to cash. Your accounting firm may discover that your business doesn’t need to borrow any money at all.
Help to assess the impact of the loan on your business
Your accounting firm can assess your current and projected cash flow and income statement so you can determine the amount of money your business can afford to borrow.
Questions to consider:
- Will payments stretch your business too thin?
- Will the debt liability prove to be a burden?
- What is the most affordable source of financing?
Your accounting firm will act as a sounding board and provide important input before you decide to proceed with the financing application.
Support for the application process
There are several benefits to working with your accounting firm to prepare the bank paperwork.
- Banks prefer to receive financial statements prepared or audited by an accounting firm.
- The amount of money your organization needs will be accurate, and your repayment plan sound.
- Your accounting firm can field any questions from the bank, if required.
- Your firm can advise on interest rates and repayment agreements during the negotiation process.
Improve your chancing of achieving financing success by working with your trusted accounting firm.
Discover the Claret Partners Advantage
No matter what your business or the size, tax departments have a significant responsibility – to deliver efficient, credible tax provisions, reporting and compliance. Achieving this goal requires your data, technology, people and process be effectively integrated.
To discuss your tax provision needs, please call 416-406-3337 or contact us to request more information.